Press Release - 1 September 2003
The Jersey Financial Services Commission has today, 19th December 2003 issued its quarterly report for the period 1 July 2003 to 30 September 2003.
Jersey bank deposits have remained at a similar level to those seen during the last quarter at £155.7 billion. There has in fact been a small decrease of £627 million (0.4%) in the total reported funds held on deposit over the last quarter. However there has been a 14% increase over the same quarter last year. (see Appendix B).
Approximately 85% of bank deposits are held in currencies other than sterling and the continued weakness of many of these currencies against sterling over the quarter will have had an effect on the reported values in sterling. Therefore, the underlying value of deposit balances in denominated currencies has continued to trend upwards.
As of the 30th June 2003 the value of funds in the Island stood at £98.3 billion. This is an increase of 2.6% since the last quarter. This increase is due to the rise in the value of the underlying portfolios as a result of the recent improvement of the performance of the stock markets. Whilst we have seen 11% increases in the Dow Jones and FTSE indices during the past three months, these rises have yet to recapture the confidence of investors. A number of funds hold their portfolios in US dollars and the strength of sterling against the dollar over the quarter has had a negative effect on the reported values. Compared to the same quarter last year, the values of funds have decreased by 7.9 billion or 7.5%(See Appendix A).
COLLECTIVE INVESTMENT FUNDS
The total number of incorporations during this quarter was 442, which shows a decrease of 47% over the same period last year. This trend has continued from the last quarter. We believe this is due primarily to the current dip in the global economy and the changes in UK legislation.
The number of 'fast track' incorporations for this quarter was 187 and the number of normal company incorporations for this quarter was 255. (See Notes to Editors.)
Against their self-imposed target of 95%, Registry recorded a 99.6% rate for normal two-day incorporations and a 75% rate for fast track companies for the quarter. (See Notes to Editors.)
Figure 3 (see also Appendix C) illustrates the number of new company incorporations throughout the past four years.
TOTAL NEW COMPANY INCORPORATIONS IN THE FIRST SIX MONTHS OF
The total funds under investment management (class B of the Financial Services (Jersey) Law 1998) stood at £24.1 billion. When compared to the same quarter last year, this shows a decrease of 18.2%. Against the last quarter this represents a 13.8% decrease, continuing the recent trend and once again indicating the lack of investor confidence in the global markets.
As at 30 June 2003 the total number of clients of investment managers was 20,394.
There were four new Category A licences issued during this second quarter of the year, no new Category B Insurance permits and no permits were cancelled.
Therefore as at 30 June 2003, there were 166 Category A permits in issue and 19 Category B permits.
ALL INSURANCE LICENCES AS AT 30 JUNE DURING THE PAST FOUR YEARS
Richard Pratt, Director General of the Commission, commenting on the quarterly statistics said today, "Despite the continuing fall in the number of Company Incorporations we have seen during the recent past, the Commission remains positive about the figures seen in this report. Bank Deposits have remained at a high level and the value of the Islands funds has increased for the first time in six months. The performance of the Island's finance industry during the past quarter has shown that the Island continues to attract business during this time of difficult trading conditions, and that can only bode well for the Island as a whole."
Annual growth in Collective Investment Funds to date. £ Millions
Annual growth in Banks and Bank Deposits to date. £ Millions
For further information:
Telephone: +44(0) 1534 822011